The dollar's days as reserve currency may be ending, but it won't be because China decided to dump its pile of US Treasuries. No, no. It will be because austerity measures in the US lack of demand for imports making it less necessary to trade in US$. It will be because Barak's "weak dollar" policy led to the demise of Bretton Woods 2 which kept interest rates low by recycling capital into the US. And, it will be because Congress and the White House were incapable of fixing the financial system, reigning in Wall Street, or restoring credibility to the markets. These are the real reasons the greenback is toast and Gold is the way forward.
As Volcker opines, "We’re faced with broken financial markets, underperformance of our economy and a fractious political climate" because we no longer have "a successful governing model" that the rest of the world admires. Absent radical restructuring and a new regulatory regime, the dollar will be unable to maintain its "exceptional role" as the world's reserve currency. It's only a matter of time. And, it then will be Gold that yet again will be the only true store of value.
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